European Banking Union

NCMF is organising a seminar on the European Banking Union. The seminar is co-hosted by the Bank of Finland.

The Banking Union is a major pillar of the regulatory actions taken by the European Commission after the financial crisis. In addition to the ‘single rulebook’ which sets out the common rules which all financial institutions in the EU must comply with, the single supervisory mechanism has made the European Central Bank (ECB) directly responsible as the central prudential supervisor of financial institutions in the euro area and in those non-euro EU countries that elect to join the single supervisory mechanism. Further, the single restructuring and resolution regime ensuring that financial institutions which face serious difficulties are resolved effectively with minimal costs, will affect not only credit institutions and supervisors in the euro area, but also financial institutions in non-euro EU countries, as competent authorities in such countries may choose to participate under close cooperation with the ECB. These three key elements of the Banking Union; a single rulebook, single supervision and single resolution, represent an unprecedented transfer of power from national financial regulators across the EU to the ECB.

What does this mean for the European financial system, supervisory authorities and financial institutions? What are the economic and legal shortcomings of the Banking Union? How do the initiatives affect financial institutions operating outside the euro area? We have invited the following high-calibre speakers to discuss the impact of European Banking Union: